Insightful Overview of Recent Investment Adjustments and Portfolio Strategy
Dodge & Cox (Trades, Portfolio), a distinguished investment firm established in 1930 by Van Duyn Dodge and E. Morris Cox, continues to influence the investment landscape with its team-based research approach and long-term value investment philosophy. The firm's Investment Policy Committees play a crucial role in steering its portfolio decisions, aiming to capitalize on undervalued opportunities that promise substantial long-term returns. This strategy is evident in their latest 13F filing for the second quarter of 2024, which reveals significant transactions including new buys, position increases, and strategic exits.
Summary of New Buys
Dodge & Cox (Trades, Portfolio) introduced five new stocks to their portfolio in this quarter. Notably:
- Humana Inc (HUM, Financial) emerged as the top new entry with 4,308,536 shares, valued at approximately $1.61 billion, making up 0.97% of the portfolio.
- Coupang Inc (CPNG, Financial) followed, with 12,114,152 shares worth around $253.79 million, accounting for 0.15% of the portfolio.
- BanColombia SA (CIB, Financial) was also added with a modest 13,000 shares, totaling $424,450.
Key Position Increases
The firm also raised its stakes in 26 existing holdings, with significant increases in:
- CVS Health Corp (CVS, Financial), where Dodge & Cox (Trades, Portfolio) boosted their holding by 20,670,800 shares, bringing the total to 61,683,343 shares. This adjustment increased the portfolio impact by 0.73% and the holding's value to approximately $3.64 billion.
- Norfolk Southern Corp (NSC, Financial) saw an addition of 2,669,800 shares, totaling 10,794,867 shares valued at about $2.32 billion.
Summary of Sold Out Positions
In a strategic move, Dodge & Cox (Trades, Portfolio) exited four positions entirely:
- Ovintiv Inc (OVV, Financial) was completely sold off, removing 8,665,010 shares from the portfolio, which previously impacted it by -0.26%.
- All 19,950 shares of ICICI Bank Ltd (IBN, Financial) were also liquidated, having a negligible impact on the overall portfolio.
Key Position Reductions
Moreover, the firm reduced its holdings in 108 stocks. The most notable reductions were:
- The Cigna Group (CI, Financial), where shares were cut down by 4,275,082, decreasing the stake by 32.56% and impacting the portfolio by -0.9%.
- Wells Fargo & Co (WFC, Financial) saw a reduction of 22,898,565 shares, marking a 19.88% decrease and a -0.77% portfolio impact.
Portfolio Overview
As of the second quarter of 2024, Dodge & Cox (Trades, Portfolio)'s portfolio comprised 202 stocks. The top holdings included 3.79% in Charles Schwab Corp (SCHW, Financial), 3.4% in Johnson Controls International PLC (JCI, Financial), and 3.29% in Wells Fargo & Co (WFC). The firm's investments are predominantly concentrated across 11 industries, reflecting a diverse yet strategic market engagement.
This detailed analysis of Dodge & Cox (Trades, Portfolio)'s latest 13F filing underscores their strategic investment maneuvers and adjustments in response to market dynamics, aiming to optimize portfolio performance while adhering to their value-based investment philosophy.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
